Bond yields continued to trade range-bound for fifth session in row on expectations that the central bank would hold rates steady at its policy review next week, kept investors at the bay. However, any cues on likely government reforms such as hike in diesel prices ahead of the RBI policy review on July 31 could spur gain bond prices.
On the global front, US 10-year Treasuries dipped in Asian trade on Friday, while Brent crude rose more than $1 on Friday, after European Central Bank President Mario Draghi pledged to do whatever was necessary to protect the euro zone from collapse.
Back home, the yields on 10-year benchmark 8.79% - 2021 were trading 1 basis point higher at 8.12% from its previous close of 8.11%.
The benchmark five-year interest rate was trading 1 basis point lower at 7.63% from its previous close of 7.64%.
The Government of India have announced the sale (re-issue) of four dated securities for Rs 15,000 crore on July 27, 2012 (i) “8.07 percent Government Stock 2017-JUL” for a notified amount of Rs 4,000 crore (nominal) through price based auction; (ii) “8.15 percent Government Stock 2022” for a notified amount of Rs 6,000 crore (nominal) through price based auction; (iii) “8.97 percent Government Stock 2030” for a notified amount of Rs 3,000 crore (nominal) through price based auction; and (iv) “8.33 percent Government Stock 2036” for a notified amount of Rs 2,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on July 27, 2012
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